Restaurant chain Golden Gate forecasts profit slump of 75% in 2023

Golden Gate Group JSC (Golden Gate), a major developer and operator of restaurants in Vietnam, is targeting net revenue of VND6.89 trillion ($293.17 million) in 2023 and after-tax profit of VND167 billion ($7.11 million), down 1.1% and 74.6% year-on-year, respectively.

The figures will be officially released at the company's annual general meeting of shareholders (AGM) on June 30.

In 2023, the company will continue to focus on developing and expanding its nationwide restaurant network and exploiting the strengths of key brands, while developing new brands and business segments, such as food deliveries, corporate governance, and applying new technology to optimize operations.

Golden Gate is expected to pay a cash dividend for 2022 with a value equal to 257% of par value, equivalent to VND25,700 ($1.1) per share, of which it has advanced VND6,500 per share.

In 2022, Golden Gate reported after-tax profit of VND658 billion ($28 million), while it lost more than VND430 billion ($18.32 million) in 2021, a pandemic year.

The company's net revenue reached VND6.97 trillion ($296.85 million) in the year, up two times year-on-year, according to its consolidated audited financial statement. Of this, revenue from food and beverages stood at VND6.96 trillion ($296.42 million).

Golden Gate currently manages the largest branded restaurant chains in Vietnam, focusing on the mid-end segment with brands including GoGi, Kichi - Kichi, iSushi, Vuvuzela, and Ashima.

At the beginning of March 2023, Golden Gate issued a resolution to terminate the operation of 39 branches in notable localities like Quang Ninh, Hai Phong, Danang, Vung Tau, and Binh Duong. Most of the branches that closed were located in famous local shopping centers.